SoundHound AI (NASDAQ:SOUN) Shares Down 1.9% – Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price traded down 1.9% during mid-day trading on Thursday . The company traded as low as $7.68 and last traded at $7.70. 43,162,255 shares traded hands during trading, an increase of 65% from the average session volume of 26,136,846 shares. The stock had previously closed at $7.85.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the company. Piper Sandler reiterated a “neutral” rating and set a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. HC Wainwright decreased their price objective on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a report on Monday, March 2nd. Zacks Research upgraded SoundHound AI from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. DA Davidson set a $14.00 price target on SoundHound AI in a research note on Thursday, January 8th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, SoundHound AI has an average rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Trading Up 4.9%

The company has a 50 day moving average price of $7.44 and a 200 day moving average price of $11.15. The company has a market capitalization of $3.42 billion, a P/E ratio of -161.57 and a beta of 2.71.

SoundHound AI (NASDAQ:SOUN) last issued its earnings results on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, hitting the consensus estimate of ($0.02). SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.The company had revenue of $55.06 million during the quarter, compared to the consensus estimate of $53.88 million. During the same period in the previous year, the company posted ($0.05) EPS. The firm’s revenue for the quarter was up 59.4% compared to the same quarter last year. As a group, sell-side analysts forecast that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In related news, CFO Nitesh Sharan sold 44,027 shares of SoundHound AI stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $298,943.33. Following the completion of the sale, the chief financial officer directly owned 1,661,121 shares of the company’s stock, valued at approximately $11,279,011.59. This trade represents a 2.58% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, COO Michael Zagorsek sold 52,968 shares of SoundHound AI stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $359,652.72. Following the sale, the chief operating officer directly owned 1,734,491 shares of the company’s stock, valued at approximately $11,777,193.89. The trade was a 2.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 307,973 shares of company stock worth $2,091,110 in the last 90 days. Company insiders own 9.17% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SOUN. Northwestern Mutual Wealth Management Co. raised its holdings in SoundHound AI by 83.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after acquiring an additional 1,060 shares in the last quarter. Dogwood Wealth Management LLC raised its holdings in SoundHound AI by 152.1% in the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after acquiring an additional 1,544 shares in the last quarter. Danske Bank A S acquired a new position in SoundHound AI in the 3rd quarter valued at $26,000. SHP Wealth Management acquired a new position in SoundHound AI in the 4th quarter valued at $27,000. Finally, Financial Consulate Inc. acquired a new position in SoundHound AI in the 3rd quarter valued at $32,000. 19.28% of the stock is owned by institutional investors and hedge funds.

About SoundHound AI

SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.

The company’s core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.